Merger Rumour Stirs Big Banks; FINANCE,BANKS,MERGERS

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Byline: RUTH SUNDERLAND;IAN KING

BANKS are braced for fresh takeover turmoil after speculation about a [pounds sterling]37 billion merger of the Halifax mortgage bank and insurer Prudential.

Sources believe that other suitors such as Lloyds TSB may be eyeing Halifax, which has fallen out of favour with the City.

The former building society has lost ground to rivals in its key mortgage market and is accused of failing to capitalise on its [pounds sterling]3 billion cash mountain.

Sir Brian Pitman, chairman of Lloyds TSB and a legendary predator, is known to be on the prowl for acquisitions.

He declared recently that the recent shakeout …